This Automation Tool is a Must for Combatting Fraud | Lenvi

In this episode of the Fintech Show we’re talking risk management and fraud prevention in the receivables finance sector. We speak to Ahmed Amin and Andrea Tanner from Lenvi, to find out about their work and how their software Riskfactor could hold the key to better processes in this area of finance.

Risk management in banking is as big of a concern as ever, with liquidity under pressure from high interest rates and challenging economic conditions. In this video we hear about the market dynamics affecting lenders right now and what is needed to effectively manage a growing portfolio.

There are also understandable concerns about fraud, something which poses a threat to any financial institution. The cost of fraud is huge, and according to this McKinsey report, “In 2022, the FTC reported that scams were up 49 percent from 2021, with consumers losing nearly $8.8 billion.” Nascent technology is also potentially exacerbating the issue, with AI driven fraud increasingly coming to the forefront.

Our speakers are perfectly placed to discuss the issue, as Lenvi recently released their own report oAn being prepared for Fraud. Their 2023 European Fraud Readiness Report uncovered attitudes towards and concerns around Fraud in European Receivables Finance in particular.

Some of the findings include almost 90% of respondents feeling that fraudulent activity has increased in the last year. 70% said fraud is a significant risk to their receivables finance business in particular. Most concerning is that almost one in three respondents believed their company detected no more than half of the attempts made to defraud their business.

Alongside this research, Sales Director Amin and Head of Customer Success Tanner, bring decades of experience in financial services, banking and receivables finance to this insightful conversation.

The discussion delves into Riskfactor’s functionality, highlighting its ability to leverage data from core operating platforms to detect changes in behaviour, indicative of fraud. By streamlining this whole process it means employees are better placed to take action and be more efficient.

There’s also talk about how partnerships with third-party software vendors play a crucial role in expanding the reach of their software to global markets. We hear about their European expansion and the recent release of Version five, which boasts improved user interfaces and enhanced data functionality.

Despite economic uncertainties and an uptick in fraud, there’s a lot of optimism here as a growing emphasis on automation and improving internal processes in receivables finance could change the game. Risk factor’s risk-based approach and ability to cater to diverse client segments, especially SMEs, position it as a valuable tool in navigating evolving market dynamics and managing portfolio growth efficiently.

Riskfactor could play a pivotal role in your business and this video explains why. Watch to find out more.